IT headcount may fall in Q1 as companies see dip in client additions

India’s top IT companies are expected to report a dip in headcount in the first quarter of the year ending in June as they continue to grapple with slower client addition amid a tough macroeconomic environment.

The hiring squeeze is driven by a greater focus on improving efficiency and margins, experts said. They expect these companies to restart hiring in the second half of the year if not in the next quarter.

During the previous quarter ended March, the top five Indian IT majors had reported a reduction in headcount of over 5,600 people. This was on top of a dip of around 5,000 jobs during the quarter ended December.